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Computing Elements of Owners' Equity

Computing Elements of Owners' Equity
From the information provided, determine:
1. The amount of retained earnings at December 31.
2. The amount of revenues for the period.
Totals January 1 December 31
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000 $ 15,000
All other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000 180,000
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 45,000
Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 ?
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 ?
Additional data:
Expenses for the period were $75,000.
Dividends paid were $11,500.
Capital stock increased by $10,000 during the period.

Solution Preview

Computing Elements of Owners' Equity
From the information provided, determine:
1. The amount of retained earnings at December 31.
2. The amount of revenues for the period.

Totals January 1 December 31
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000 $ 15,000
All other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000 180,000
Liabilities . . . . . . . . . . . . . . . . . ...

Solution Summary

This solution is comprised of a detailed explanation to determine the amount of retained earnings at December 31 and the amount of revenues for the period.

$2.19